IDEAS home Printed from https://ideas.repec.org/a/rbs/ijfbss/v3y2014i2p1-9.html
   My bibliography  Save this article

Does High Yield Spread Dampen Economic Growth?: The Case of US-Japan

Author

Listed:
  • Yutaka Kurihara

    (Professor of International Economics and Finance, Faculty of Economics, Aichi University, Japan)

Abstract

This article focuses on the empirical relationship between the United States’ and Japan’s yield spread of interest rates and economic growth in Japan. The yield spread is defined in this article as the difference between the Japanese government bond yield minus the US government bond yield. Some studies have tackled this issue and found a negative relationship between the yield spread and economic growth; however, recent studies have shown no or a weak relationship. This problem has not yet reached consensus in spite of its importance. As the Japanese interest rate has been quite low since the adoption of the zero interest rate policy at the end of 1990s, the situation may change the results. The empirical results show that reliability of yield spread as a leading indicator of output growth exists in Japan; however, term structure of interest rate is not related to output growth

Suggested Citation

  • Yutaka Kurihara, 2014. "Does High Yield Spread Dampen Economic Growth?: The Case of US-Japan," International Journal of Finance & Banking Studies, Society for the Study of Business & Finance, vol. 3(2), pages 1-9, April.
  • Handle: RePEc:rbs:ijfbss:v:3:y:2014:i:2:p:1-9
    as

    Download full text from publisher

    File URL: http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/309/195/309-823-1-PB.pdf
    Download Restriction: no

    File URL: http://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/309/195
    Download Restriction: no

    More about this item

    Keywords

    Economic Growth; Interest Rate; Yield Spread;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijfbss:v:3:y:2014:i:2:p:1-9. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Senol Emir). General contact details of provider: http://edirc.repec.org/data/ssbffea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.